First Solo Deal in MI going well

[Brandon Oldham]

Investment Info:

Single-family residence buy & hold investment in Detroit.

Purchase price: $35,000
Cash invested: $75,000

Picked up a Duplex that I decided to buy and hold. I will rent each unit for $1000 and the property comps at $150 - 185k which allow me to use the BRRRR method. There was a lot of twist and turns along the way with a few new items coming to light as we got started but everything worked out and the lender @FstreetCapital were easy to work with and helped guide me in the right direction.

What made you interested in investing in this type of deal?

I have been looking for a deal to jump in to for a while. I have helped others find deals and have even helped with the rehab and reselling part so I thought it was time to go at it my self.

How did you find this deal and how did you negotiate it?

I looked for owner financed deal on Facebook, the MLS, and Craigslist.

How did you finance this deal?

I setup the deal like I was going to do owners finance and then I asked the seller if he would take less if I gave him cash. He reduced the price and I reached out to a hard money lender to finance the deal.

What was the outcome?

I rehabbed the property and I am currently looking for tenants.

Lessons learned? Challenges?

The biggest things that I learned were more around the different laws for real estate in Michigan. I am an Agent in CA and have done some work in AZ and NV but the process is a lot different in MI. The fact that the water bill is attached to the home and not a person is an issue and slows down the buying process. Also, I dealt with some local title agency's that did not do there job forcing me to follow up and push on them and the seller.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with a hard money lender that goes by F Street Capital and The Money Co. same company. They were solid and fair in there dealings. The fees were a bit high and although they same it will be a hard money loan they needed 14-21 days o close and they acted as a traditional lender through the closing causing a bit of a headache and the seller did not see it as a cash deal at that point.

[Olivia Radziszewski]

@Brandon Oldham- Nice!! It is definitely hard to keep track of the different laws different states have.

[Santiago Marquez]

Great work Brandon. It seems like homes in the Detroit suburbs are truly beginning to return w/value on rental incomes. This example appears to even best the 1% rule. That's great!

[Drew Sygit]

@Brandon Oldham

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/...